Boeing, Lockheed Among 5 Fighter-Jet Makers Queried by Canada

Canada's federal government announced in July 2010 that it would buy 65 Lockheed F-35s to replace the CF-18s, which McDonnell Douglas Corp. -- now a part of Boeing -- began delivering to the Royal Canadian Air Force in 1982. Photographer: David McNew/Getty Images

March 3 (Bloomberg) -- Canada has asked five companies,
including Boeing Co. and Lockheed Martin Corp., to outline the
technical capabilities of their products to replace the
country’s fleet of CF-18 Hornet fighter jets.

Boeing, Lockheed, France’s Dassault Aviation SA, European
Aeronautic, Defence & Space Co. and Sweden’s Saab AB will have
six weeks to provide information, Canada’s Public Works Ministry
said in a statement today. The National Fighter Procurement
Secretariat will send out a second questionnaire at a later date
to obtain information on costs, the statement said.

The effort is part of a “rigorous examination of available
fighter-aircraft options on the market and how they could
accomplish the missions outlined in the Canada First Defence
Strategy,” the government said.

Canada’s federal government announced in July 2010 that it
would buy 65 Lockheed F-35s to replace the CF-18s, which
McDonnell Douglas Corp. -- now a part of Boeing -- began
delivering to the Royal Canadian Air Force in 1982. The CF-18s
will reach the end of their lifespan sometime between 2017 and
2020, according to Canada’s Public Works Ministry.

The country’s top auditor later said that defense officials
mismanaged the 2010 purchase plan, prompting the government last
year to strengthen oversight of the jet-replacement plan.

Public Works Minister Rona Ambrose said in December that
Canada would consider purchasing fighter aircraft other than the
F-35 after a report prepared by KPMG LLP showed the 65 planes
would cost C$45 billion ($43.8 billion) during 42 years.

Canada “is committed to examining all options” to replace
the CF-18s, the government said today. “Engaging with industry
is consistent with the secretariat’s commitment to transparency
and openness, and integral to a comprehensive market analysis.”

Work “will be completed as expeditiously as possible and
will culminate in a final report that captures the full analysis
of the capabilities, costs and risks of each option,” the
government said.